Hot Briquetted Iron (HBI) Market: Overview
Hot briquetted iron (HBI) is a form of direct reduced iron (DRI) with high iron content (>90%), high density greater than 5,000 kilograms per cubic meter, and has compaction temperature greater than 650°C. HBI is produced by reducing iron ore with natural gas in the form of briquettes. These briquettes are produced using the fluid bed process under temperature of 700° C and high pressing forces. HBI is used as a supplement scrap for electric furnace steel mills and pig iron.
Hot Briquetted Iron (HBI) Market: Key Segments
The global hot briquetted iron (HBI) market can be segmented in terms of process and application. In terms of process, the global hot briquetted iron (HBI) market can be bifurcated into gas and coal. Based on application, the global hot briquetted iron (HBI) market can be divided into electric arc furnace (EAF) steelmaking, blast furnace feed stock, and trim coolant in basic oxygen furnace (BOF) steelmaking. HBI is a preferred choice for electric furnace steel making process than DRI due to its high density, which allows them to penetrate deeper into metal interface. Additionally, demand for HBI is high in ladle furnaces due to low residual content, high thermal conductivity, and compact shape, which makes it ideal for the use as a coolant for producing liquid steel. Increasing usage of HBI in blast furnace operations increases productivity and reduces coke consumption. These factors are projected to boost the demand for global hot briquetted iron (HBI) market during the forecast period.
Hot Briquetted Iron (HBI) Market: Trends & Demands
Rising demand for HBI to overcome problems associated with DRI during shipping and handling is driving the global hot briquetted iron (HBI) market. Compaction process of HBI is less porous and reactive than DRI; therefore, it does not create self-heating issues. This, in turn, is anticipated to propel the demand for global hot briquetted iron (HBI) market during the forecast period. Additionally, most manufacturers of steel across the globe are shifting their modes of production of steel from traditional blast furnace technology to electric furnace process due to increasing environmental pollution. These factors are expected to increase the demand of global hot briquetted iron (HBI) market significantly during the forecast period. High production cost and lack of consumer awareness are likely to hamper the global hot briquetted iron (HBI) market during the forecast period. Rising research & development and increase in capacity expansion by key players operating in the market are expected to increase the competition among competitors. This is expected to create lucrative opportunity in the near future.
Hot Briquetted Iron (HBI) Market: Regional Outlook
In terms of region, the global hot briquetted iron (HBI) market can be segregated into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. North America is a leading consumer of HBI, followed by Asia Pacific. Rising stringent regulations on carbon emissions during steel production in the U.S. is encouraging manufacturers to adopt environmental friendly technologies. For instance, major steel producers such as Nucor and ArcelorMittal are shifting their production volumes from blast furnace to HBI technology. This, in turn, is anticipated to propel the global hot briquetted iron (HBI) market in the U.S. during the forecast period. Surge in industrialization in countries such as China, India, and Vietnam is expected to propel the demand for HBI for steel making processes in Asia Pacific. Revival of the economy in Europe is expected to create lucrative opportunity for HBI manufacturers that are present in the region. Latin America and Middle East & Africa are expected to create lucrative opportunities in the global hot briquetted iron (HBI) market. These regions are rich in natural gas, which is an essential source for HBI production.
Key players operating in the global hot briquetted iron (HBI) market are Stena Metal Inc., voestalpine AG, and METALLOINVEST MC LLC.
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